What to Know About Departure Tax When Emigrating From Canada
                     What to Know About Departure Tax When Emigrating From
 Canada
https://www.maroofhs.com/post/deemed-disposition-and-departu
re-tax-on-ccpc-shares-at-emigration-from-canada-to-us/
When it comes to moving to a foreign country, there’re many tax 
concerns that has to be reassessed which could significantly impact 
your cash flow position at the move. Every resident of Canada is 
subject to Canadian income tax on his or her own worldwide income. 
That means that a Canadian resident has to report not just their 
Canadian source income, but also all other sources of income from 
outside Canada.
When emigrating from Canada, you will become a non-resident of 
Canada by filing a final Canadian income tax return for the year of 
emigration, also known as emigrant tax return. If this is the scenario, 
you’d no longer be needed to pay income tax on any income that are 
foreign sourced O(after emigration). You’ll still be needed to pay 
Canadian income tax on particular Canadian sourced income, which 
will be dependent on the country in which you want to dwell and the 
treaty between that country and Canada.
Filing a departure income tax return for the year of immigration can 
become pretty complicated as there’re many extra filings & 
disclosures needed. First, you have to specify the date of emigration 
from Canada. This is usually the date in when you sever all 
residential ties with Canada. 
The assets which are subject to this additional “departure tax” 
include real estate properties placed outside of Canada, worldwide 
investment portfolios, shares of a Canadian private corporation, to 
name a few. There is a long list, follow the link posted for more 
guidance on departure tax.
As there could be a high tax bill on emigration, individuals may need 
to liquidate particular assets in order to pay the tax. The CRA offers 
certain relief by letting emigrants to select in their departure income 
tax return to defer the departure tax until such property is actually 
sold. Security may be needed relying upon the sum of departure tax.
Conclusion:
As emigrating from Canada can become very complicated from a tax 
point of view, it’s always recommended to consult with a reputable 
Canadian CPA, in order to determine the most effective tax result.
You can always expect help from Maroof
 HS CPA Professional Corporation as we help our clients with all 
cross-border tax issues, personal income tax, and corporate tax 
matters. Whether you are relocating to Canada or relocating to 
somewhere else from Canada, we can help.
You can reach us at:
3-100 Hanlan Road, Woodbridge, ON L4L 4V8
Phone: (647)724-4308
Email: [email protected]
https://www.maroofhs.com/contact/
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